Costco accepting food stamps: not exactly a great idea

Costco has started to accept food stamps at its warehouse clubs nationwide, which could be great for poor people looking for deals on food, or the worst decision in the history of buying groceries.

Anyone who has been to a Costco store knows the enticements of impulse buys that you'd normally walk by without a thought at any other store. Four pounds of red king crab for $99.99? Sure, why not? A deli meat party pack for $44.99? Yeah, we'll eat it eventually. Enough cashews to keep a squirrel happy for the winter? Bring it on.

Buying in bulk is great if you plan on emptying out your pantry within six months and the purchase was a deal too good to pass up, as I discussed in a recent podcast with a frugal chef.

And with a record 35 million people being helped through the Supplemental Nutrition Assistance Program, or SNAP, in July, they sure can use the discounts offered at Costco. That's a 23% annual increase in the number of people using SNAP, proving that the recession hasn't ended yet.

The average monthly SNAP benefit last year was $101.52 per person. For a month. Try spending about $25 a week on groceries for yourself and see how far you get.